Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Marketing, Strategy, Growth, Design
Project Agorá Tests Real Money Bank Settlement Rails
May 28, 2026 | NCFA Insight | Payments And Market Infrastructure, Digital Assets Blockchain And Tokenization, Capital Markets And Market Infrastructure
Bank Of Canada Joins Next Phase Of Tokenized Bank Settlement
On May 26, 2026, the BIS released its 97 page Project Agorá report, detailing how a global public private prototype tested the feasibility of tokenized commercial bank deposits and wholesale central bank money for cross border payments. The report explains the project vision, who participated, what the prototype tested, what worked (or not), and what has to happen before any production system can operate at scale.
Project Agorá isn't a retail CBDC project, nor is it a stablecoin clone. It tests whether today’s correspondent banking system can use tokenized bank money and smart payment workflows to make wholesale cross border payments faster, safer, more transparent, and easier to coordinate.
Cross border payments totalled USD $195 trillion in 2024 and are projected to reach USD $320 trillion by 2032. Wholesale payments accounted for 91% of cross border payment value in 2023. These flows affect banks, PSPs, exporters, capital markets firms, treasury teams, and fintechs building around global money movement.
Bank Of Canada Joins The Next Phase
On May 27, 2026, the Bank of Canada joined Project Agorá, giving Canada a seat at the table and role in the next phase of testing. The Bank says the project has successfully tested the feasibility of a multi currency unified ledger that enables atomic settlement of wholesale cross border transactions.
The next phase will continue testing the prototype and examine how an Agorá type platform could operate under existing legal and regulatory frameworks, including settlement finality, anti money laundering rules, and terrorist financing rules.
Carolyn Rogers, Senior Deputy Governor, Bank of Canada:
“We know that the Canadian economy could benefit from innovation in cross-border payments. Tokenization has the potential to make these payments faster, cheaper and more efficient and secure. Project Agorá is a unique opportunity to test the technology across several jurisdictions and currencies, with the participation of private sector financial institutions.”
Agorá Tests Programmable Bank Money
Project Agorá was convened by the BIS and the Institute of International Finance. It originally brought together 7 central banks and more than 40 regulated financial institutions, including banks, payment service providers, financial market infrastructures, and global payment networks.
The central bank group includes the Federal Reserve Bank of New York, Bank of England, Bank of France representing the Eurosystem, Bank of Japan, Bank of Mexico, Swiss National Bank, Bank of Korea, and now the Bank of Canada for the next phase. That makes Agorá a multi currency and multi jurisdiction test, not a single bank proof of concept.
See: AI, Capital, Money Rewire Financial Infrastructure In 2026
The project keeps correspondent banking as the base model. Banks still manage customers, deposits, access, compliance, and balance sheet relationships. Central banks still control reserves and domestic policy settings. Agorá adds a shared programmable platform to coordinate the payment workflow.
How The Platform Would Work
The prototype uses a two layer architecture. (1) A unifying ledger records tokenized commercial bank deposits and coordinates the cross border workflow. (2) Separate jurisdictional ledgers record tokenized central bank reserves so each central bank keeps control over its own money, access rules, and policy settings.
The payment workflow has five stages. Agorá checks the payee, finds the payment route, confirms required checks, locks the needed balances, then settles the transaction. In report terms, those stages are confirmation of payee, path discovery, validation, locking, and settlement.
The order sequencing matters. Agorá checks the payment before banks lock up liquidity. It confirms the payee, route, required checks, and available balances first. Only then does settlement begin. That reduces the risk of finding a problem after money has already been committed.
Source: Bank for International Settlements, Project Agorá, “Wholesale cross border payments today and in Project Agorá,” Figure 1.
Atomic Settlement Worked In The Prototype
The prototype showed that atomic settlement is achievable in a tokenized environment across the participating jurisdictions. This means that either every required balance update happens, or none of them happen. One leg of a transaction cannot settle while another fails.
The report says settlement can occur in seconds once funds or liquidity are locked. The platform is also designed to operate around the clock, which could reduce delays caused by time zones and market hours. That doesn't mean every payment becomes instant from start to finish. It means the settlement step can happen quickly after the required checks and liquidity locks are complete.
The prototype also showed that shared infrastructure doesn't require shared data by default. Participants can coordinate payment status, validation outcomes, and settlement without exposing customer data, internal risk models, or sensitive routing information to everyone on the platform.
The Pain Points Are Operational
The report identifies specific pain points in wholesale cross border payments. They include mismatched operating hours, sanctions and compliance false positives, serial processing, poor data quality, weak payment status visibility, unclear fees, liquidity pressure, settlement risk, reconciliation breaks, and client outreach.
See: CBDC Tokenization And Stablecoin Design For Fintechs
These are practical banking problems. A false positive can stop a legitimate payment. A missing data field can trigger manual review. A payment status gap can leave banks and clients unsure where funds are stuck. A reconciliation break can create cost after settlement. Liquidity sitting in the wrong place can weaken treasury efficiency.
The report doesn't make cost reduction the main objective because many wholesale payment costs come from FX pricing and market structure. The stronger claim is narrower though. Fewer failed payments, investigations, returns, and reconciliation breaks could reduce operating drag if the model works in production.
Compliance Stays With Each Institution
Agorá doesn't try to centralize AML, counter terrorist financing, sanctions, fraud, or policy decisions. Each institution still performs its own checks inside its own systems. The platform coordinates only the outcomes needed to move the workflow forward.
This is important for banks who need shared infrastructure, but they don't want to expose customer information, proprietary screening logic, or internal compliance decisions to every other participant in a payment chain. Agorá uses scoped privacy and controlled information sharing so only relevant parties receive the data they need.
The result is a realistic compliance model for regulated institutions. It doesn't remove compliance work. It tries to reduce duplication, bring validations earlier in the process, and stop settlement from starting before required checks are complete.
Tokenized Money Keeps Its Legal Nature
The report’s legal analysis as tested in Agorá, found that tokenization doesn't fundamentally change the legal nature of money. Tokenized central bank reserves remain central bank reserves. Tokenized deposits remain commercial bank deposit obligations.
See: VersaBank USA Launches Tokenized Deposits Pilot
It suggests tokenized bank money can develop inside existing legal and regulatory frameworks instead of starting from a blank page. It also separates Agorá from private digital asset models where the legal nature of the claim can be less familiar.
The report doesn't claim every legal issue is solved however. Settlement finality is achievable across the participating jurisdictions, but production deployment would still need rulebooks, contractual frameworks, liability rules, governance, data rules, insolvency treatment, and clear legal effect across jurisdictions.
Benefits And Risks For Banks And Fintechs
The strongest benefits are operational. Agorá could give banks better payment status visibility, earlier data checks, fewer late stage failures, faster settlement after liquidity is locked, and more predictable workflows across currencies.
Treasury teams could benefit from better liquidity coordination. Cross border payments today can require prefunding, manual investigation, and treasury allocation across time zones. Agorá’s design could reduce some of that friction by coordinating payment paths, validations, balance locks, and settlement in one workflow.
The risks are in production execution. The report says the prototype didn't prioritize production grade performance, cyber security, or liquidity saving tools. It also left FX integration and other tokenized asset classes outside scope.
A real system would need to connect with existing bank infrastructure and prove it can operate under stress. That means strong governance, resilience testing, failover, monitoring, and clear performance benchmarks.
What To Watch Next
The Bank of Canada is now involved, but commercial value depends on private sector participation. Canadian banks, PSPs, market infrastructure providers, and fintechs need a role in testing, rule design, and integration.
For fintechs, the opportunity is to build around the workflow through compliance tools, privacy technology, treasury systems, FX routing, liquidity optimization, reconciliation software, APIs, and analytics.
See: Tokenization Finds Scale In Collateral And Cash
Agorá gives banks and central banks a regulated alternative to stablecoin settlement networks, but only if the next phase proves it can handle real value, real liquidity, and real operating rules.
Talking Point
If Project Agorá evolves from prototype to real value settlement, will tokenized bank deposits become the regulated answer to stablecoin driven cross border payments?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Are Stablecoins Becoming Payment Infrastructure?
Stablecoins Expand From Crypto Products Into Payment And Reserve Infrastructure
Last Updated: May 28, 2026
Status: Building
Organizations: SoFi, Department of Finance Canada, Bank of Canada, FCA, UK Government
The answer is yes, but not because stablecoins are leaving crypto behind. They are expanding from crypto market use into banking apps, remittances, reserve models, and payment policy. The test is no longer whether tokens can move on chain. The test is whether they can move money inside regulated financial systems.
- SoFiUSD shows how stablecoins can enter mainstream distribution. A national bank is putting a bank issued dollar stablecoin inside a consumer financial app. That gives stablecoins a different trust frame than exchange based tokens.
- Canada’s stablecoin framework gives this question direct domestic relevance. The federal framework brings stablecoin issuance, reserves, custody, redemption, and Bank of Canada oversight into the financial policy stack.
- The UK is building the policy lane. FCA and UK Government work on qualifying stablecoins points toward payment use cases that sit inside authorization, reserve, custody, and consumer protection rules.
The link to payment access is important. Stablecoins need banking partners, reserves, payment gateways, custody controls, and settlement routes. That connects directly to limited direct settlement access, because stablecoin utility depends on how close non bank firms can get to trusted payment and reserve infrastructure.
The firms to watch are the ones that can make stablecoins boring enough to use. That means clean reserves, clear redemption, strong compliance, distribution reach, and payment flows that solve real problems.
Strategic Takeaway
Stablecoins are expanding into payment infrastructure where they connect trusted reserves, regulated distribution, and real money movement. The strongest players may be firms that can make tokenized money useful without making users think about crypto at all.
Market And Policy Evidence
Click each item to expand
1. SoFiUSD Launches On A Banking Platform (May 2026, United States) ⓘ
SoFiUSD shows stablecoins moving into mainstream financial distribution. The product is positioned as a bank issued, 1:1 redeemable U.S. dollar stablecoin inside the SoFi app.
- SoFi says nearly 15 million members can buy, sell, hold, and convert SoFiUSD directly in its app.
- The stablecoin is described as bank grade and 1:1 redeemable for U.S. dollars.
- The launch links stablecoin utility with consumer banking access rather than only crypto native wallets or exchanges.
Source
2. Canada Advances Stablecoin Framework (Mar 2026, Canada) ⓘ
Canada’s framework gives the stablecoin infrastructure question a domestic policy base. It moves stablecoin activity toward rules for issuance, reserves, custody, redemption, governance, and oversight.
- Finance Canada says the proposed framework is intended to support safe innovation and competition while protecting consumers.
- The framework applies to both domestic and foreign issuers.
- NCFA coverage of Bill C-15 framed the framework as part of Canada’s broader digital finance execution test.
3. UK Policy Moves Stablecoins Toward Payments (Apr 2026, United Kingdom) ⓘ
UK policy work shows regulators treating stablecoins as potential payment instruments, not only crypto assets. That means issuance, custody, reserves, and payment services are becoming connected policy questions.
- The UK Government says it plans to consult on bringing payment services using qualifying stablecoins into regulated payment services reforms.
- The FCA has worked on rules for qualifying stablecoin issuance and cryptoasset custody.
- The FCA also identified stablecoin payments as a 2026 priority and linked the work to faster and more convenient payments.
Do you agree the evidence is strengthening?
1
Explore Trending Questions
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Are Non-Bank Firms Getting Closer To Limited Direct Settlement Access?
Policymakers Test Narrower Payment Access Models For Qualified Non Bank Firms
Last Updated: May 27, 2026
Status: Building
Organizations: Federal Reserve, Neo, Interac, Tether, Government of Georgia
The answer is moving toward yes, but through tighter gates. Regulators are not opening settlement systems to every fintech. They are testing whether some firms can reach parts of the settlement layer without becoming banks.
- The Federal Reserve’s proposed Payment Account framework is the clearest sign so far. Eligible firms could support specific payment and reserve functions, but without intraday credit, discount window access, interest on balances, or full Master Account rights.
- Neo’s direct access to Interac e-Transfer shows the model already exists in narrower form inside Canada’s payment system. The gain is not prestige. It is more control over routing, customer flow, timing, and cost.
- Tether’s GEL₮ project with Georgia pushes the pressure further. Stablecoins are moving into remittances, digital payments, and state backed financial infrastructure discussions. That changes the settlement conversation. It is no longer limited to bank transfers and card rails.
Canada already allows some narrower access models through Interac participation and registered payment frameworks. The next pressure point may come from real time payments, stablecoin reserve treatment, tokenized settlement, or cross border payment competition from outside Canada.
The firms to watch are not necessarily the biggest fintechs. The advantage may go to companies that can prove resilience, compliance depth, operational uptime, fraud controls, and trusted movement of funds at scale. Regulators appear more willing to test narrower infrastructure access when the activity is tightly defined and operationally mature.
Strategic Takeaway
Limited direct settlement access is becoming a middle layer between sponsor bank dependence and full banking status. That could reshape who controls payment flow, customer relationships, settlement logic, and financial infrastructure over the next few years.
Market And Policy Evidence
Click each item to expand
1. Fed Proposes Limited Payment Accounts For Eligible Firms (May 2026, United States) ⓘ
The Fed proposal separates limited payment access from full banking status. It gives regulators a way to test settlement and reserve functions without granting the full benefits of a Master Account.
- The proposal would create Payment Accounts without intraday credit, discount window access, interest on balances, or full Master Account privileges.
- The Fed identifies use cases including stablecoin reserves, tokenized securities settlement, pay by bank checkout, B2B transfers, instant wages, refunds, and cross border dollar settlement.
- The model would keep liquidity support and full banking privileges outside the non bank account structure.
2. Neo Gets Direct Access To Interac e-Transfer (Apr 2026, Canada) ⓘ
Neo’s Interac access gives the Canadian market a practical proof point. Direct rail participation can improve control over payment flow without turning a fintech into a full bank.
- Neo gained direct access to Interac e-Transfer inside Canada’s payment infrastructure.
- The access gives Neo more control over routing, customer experience, and payment operations.
- The development shows sponsor bank dependence is not the only possible model for qualified fintechs.
3. Tether And Georgia Plan National Lari Stablecoin (May 2026, Georgia) ⓘ
The Georgia stablecoin plan shows why this question is moving beyond traditional payment rails. Stablecoins can connect payments, remittances, programmable finance, and national digital infrastructure.
- Tether announced plans for GEL₮, a stablecoin representing the Georgian lari, with government support.
- The initiative targets remittances, digital payments, fintech development, and programmable financial infrastructure.
- The project adds pressure to define how non bank money infrastructure should access settlement and reserve layers.
Source
Do you agree the evidence is strengthening?
0
Explore Trending Questions
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Novisto Raises USD $27M For Audit Ready ESG
May 27, 2026 | NCFA Market Activity | Risk Compliance And Regtech, Banking And Credit Infrastructure, Artificial Intelligence And Data
Novisto Raises Capital As ESG Claims Need Proof
On May 20, 2025, Montreal based Novisto announced a USD $27M Series C round led by Inovia Capital, with White Star Capital, SCOR Ventures, and Sagard participating. Novisto says the financing brings its total funding to more than USD $55M. The money comes as ESG reporting moves away from wide sustainability claims and into data controls, audit trails, and disclosure risk.
Green Claims Need Proof
On April 23, 2025, the Canadian Securities Administrators paused mandatory climate and diversity disclosure rules, but greenwashing risk remains high Issuers gained more time on reporting. Unsupported environmental claims still carry legal and reputational risk.
The Competition Bureau’s environmental claims guidance expects businesses to back green claims with evidence. NCFA previously wrote about Canada’s updated rules for environmental claims which explains why sustainability language now needs verification records behind it. Yes, that includes many types of fintech firms, such as ESG data analytics, carbon platforms, and investor communications.
ESG Data Needs Audit Trails
Novisto helps companies turn scattered sustainability data into usable reporting records. That means cleaner source data, clearer approvals, and stronger evidence when claims face review.
Revenue almost tripled since Novisto’s 2023 Series B. Clients also reported a 50% reduction in time spent completing reporting assessments. Enterprise buyers are still spending because ESG data now needs source records, approvals, and proof.
See: RBC Drops Green Commitment After Law Change
Novisto also points to AI powered ESG data automation and audit readiness. AI can speed up extraction, benchmarking, and disclosure mapping, but bad records still break automated reporting systems. Financial institutions already know this from credit, fraud, risk, and regulatory reporting.
Europe Needs Reporting Systems
Novisto plans to use the financing to expand in Europe. Sanofi used Novisto to produce one of the first 15 CSRD compliant reports released in 2025. Emirates Group is a recent customer, and S&P Global is a distribution partner.
Europe gives Canadian regtech firms a live commercial opening. Large enterprises now need systems that can defend sustainability disclosures under tighter reporting standards for boards, CFOs, auditors, regulators and investors. No more spreadsheet cleanup before every reporting cycle.
For financial institutions, OSFI’s climate risk guideline still expects federally regulated financial institutions to manage climate related risk through governance and disclosure. That keeps climate and sustainability data tied to risk controls, not just communications.
Talking Point
If green claims need proof now, how should Canada balance slower climate disclosure rules with tougher greenwashing enforcement so credible reporting infrastructure wins and weak ESG claims lose market trust?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Quantum Bridge Raises USD $8M For Quantum Security
May 27, 2026 | NCFA Market Activity | Funding, Risk Compliance And Regtech, Banking And Credit Infrastructure
Quantum Bridge Raises Capital For Quantum Safe Networks
On May 20, 2026, Toronto based Quantum Bridge Technologies announced a USD $8M Series A round to expand its quantum safe cybersecurity business for financial institutions, telecom networks, governments, and defence organizations. The University of Toronto spinout says the financing brings its total funding to USD $16M.
Quantum Risk Enters Budget Cycles
Quantum Bridge’s DSKE technology helps organizations create, distribute, and manage symmetric keys across existing networks. The company says customers can add the system across current vendors, security layers, and network environments without replacing core infrastructure.
The timing makes sense given that NIST released its first three post quantum encryption standards in August 2024 and urged system administrators to start moving to the new standards. In Canada, the Cyber Centre’s post quantum migration roadmap gives federal departments a planning model for transitioning non classified IT systems to post quantum cryptography.
Canada Needs Deployment Ready Quantum Firms
Canada has strong, award winning quantum researchers. Buyers need tools they can audit and apply to real networks at scale. Quantum Bridge is actively pitching that to the market directly, and not asking customers to wait for a future quantum event. It's selling a migration solution for institutions that already manage long lived data, critical communications, and regulated infrastructure.
That connects directly to fintech. Payments, digital identity, custody, banking APIs, cloud security, and customer data protection all rely on cryptography. Infrastructure teams are in need of cryptographic agility before regulatory pressure and vendor bottlenecks make upgrades harder.
Funding Follows Infrastructure Demand
The Series A gives Quantum Bridge more room to sell into high trust markets where procurement takes time and credibility counts. The investor group also tells a useful story. The round brings together venture capital, telecom exposure, enterprise technology, and cross border capital. That mix fits a company selling security infrastructure into finance, telecom, government, and defence.
See: BTQ Updates Quantum Security Commercial Roadmap
Mattia Montagna, Co Founder and CEO, Quantum Bridge Technologies:
“National security can’t wait for perfect conditions. We build quantum-safe systems that work inside real networks today — systems designed to keep protecting sovereign communications as the threat landscape evolves. This funding means we can meet more organizations where they are, and get them protected faster.”
Talking Point
Quantum Bridge’s financing shows where Canadian quantum policy needs to support execution. Canada should help qualified domestic firms prove their systems inside critical sectors before global buyers define the market without us.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Fed Payment Accounts Test Fintech Settlement Access
May 26, 2026 | NCFA Insight | Payments And Market Infrastructure, Regulation And Policy, Digital Assets Blockchain And Tokenization
The Fed May Separate Settlement Access From Full Banking Powers
The Fed is proposing limited settlement accounts for eligible firms. The bigger question is whether the U.S. gives qualified fintechs a cleaner infrastructure advantage than Canada.
On May 26, 2026, the Federal Reserve published a Federal Register proposal for special purpose Payment Accounts. Legally eligible institutions could use them to clear and settle certain payment activity through Reserve Bank accounts. Comments are due by July 27, 2026 under Docket No. OP-1878.
The proposal isn't open access to the Fed. Payment Accounts would have no intraday credit, no discount window access, no interest on balances, no correspondent activity, and no respondent activity. Closing balances would generally be capped at $1B. The account would support approved payment settlement, not full banking privileges.
Jerome H. Powell, Fed Chair said:
“The proposed payment account would be tailored to support innovation by serving the clearing and settlement needs of certain eligible institutions while also mitigating material risks to the Reserve Banks and payment system.”
Payment Accounts Are Below Master Accounts
A Master Account gives an eligible institution direct access to Reserve Bank balances and Federal Reserve payment services. The proposed Payment Account is narrower in scope. Firms would not borrow from the Fed, earn interest, receive daylight overdrafts, or use the account as a correspondent banking platform.
The Fed is testing whether limited settlement access can exist without full banking access.
Fed Access Has Been Fought For Years
Fintechs, crypto firms, trust companies, and novel chartered institutions have pushed for Fed access because sponsor bank dependence affects cost, timing, liquidity, and settlement certainty. Banks have pushed back because wide access can raise compliance, liquidity, and regulatory arbitrage concerns.
In 2022, the Fed finalized Account Access Guidelines with a tiered review framework. The toughest review applies to institutions that are not federally insured and are not subject to federal prudential supervision at the institution or holding company level.
The 2026 proposal doesn't replace that framework. It creates a tighter account model inside the same access debate.
Stablecoins And Tokenization Need Direct Settlement
The proposal discusses use cases raised by commenters, including stablecoin issuer reserve operations, tokenized securities settlement in central bank money, tokenized assets, pay by bank checkout, B2B transfers, instant wages and refunds, and the U.S. dollar leg of cross border transactions.
See: Tokenization Starts Looking Like Financial Infrastructure
Those use cases point to the same operating need, clean settlement. Stablecoin issuers need reliable reserve movement. Tokenization platforms need cash settlement closer to central bank money. PSPs need faster payment settlement. Pay by bank providers need lower cost routing. Cross border firms need cleaner dollar leg execution.
What Limited Direct Settlement Means
Today, many fintechs settle payments through sponsor banks. A fintech sends payment instructions, but the actual settlement usually happens through a commercial bank account connected to central bank rails.
Under the Fed proposal, an approved firm could potentially hold limited settlement balances directly at a Reserve Bank for approved payment activity. That could reduce some dependence on sponsor banks for specific flows.
For a stablecoin issuer, that could improve reserve movement and redemption settlement.
For a pay by bank provider, it could streamline payment routing.
For a tokenization platform, it could support settlement closer to central bank money instead of relying entirely on commercial bank ledger movement.
The proposal would not turn fintechs into banks. Firms would not receive deposit insurance, emergency liquidity, or unrestricted Fed access.
U.S. Firms Could Gain An Infrastructure Edge
If eligible U.S. firms gain limited Reserve Bank settlement access while Canadian firms remain more dependent on bank intermediaries, U.S. fintechs could gain an operating edge in payment speed, settlement certainty, reserve movement, and cost control.
See: Buy Now Pay Later Moves Into Rent And Housing Payments
That edge is important for stablecoins, tokenized securities, pay by bank, B2B payments, cross border transfers, and embedded finance. These markets compete on speed, liquidity use, compliance reliability, and integration cost.
It could also change sponsor bank negotiations. A firm with a credible settlement alternative has more leverage than one with no alternative.
U.S. And Canada Access Comparison
| Question | U.S. Fed Payment Account Proposal | Canada RPAA Registered PSP | Canada Payment Rail Participation |
|---|---|---|---|
| Live today? | No. Proposal only. | Yes | Yes |
| Can hold settlement balances at the central bank? | Only if final rules approve it and the firm qualifies. | No | No by participation alone. |
| Can settle some payments through a central bank account? | Would apply only to approved payment activity. | No | RTR may allow direct settlement for eligible participants that qualify for Bank of Canada settlement accounts. RPAA registration alone doesn't. |
| Still needs sponsor banks? | Yes, but dependence could fall for approved settlement flows. | Yes | Yes, in many cases. |
| Gets full banking powers? | No | No | No |
| Main benefit | Potentially cleaner settlement for stablecoins, tokenized assets, pay by bank, and cross border dollar flows. | Legal operation under Bank of Canada supervision. | Access to payment rails and network participation. |
Canada’s Settlement Access Question
Canada’s retail payments framework brings PSPs into Bank of Canada supervision. The PSP registry under the RPAA confirms registration status, required fees, and national security screening. Registration does not itself provide limited direct settlement access.
Payments Canada says the Real Time Rail will launch in Q4 2026 as Canada’s instant, data rich exchange and clearing and settlement payment system. RTR is expected to broaden access for eligible participants, including PSPs that meet applicable requirements.
Canada has also legislated a fiat backed stablecoin framework, with detailed rules and implementation still being developed. The framework helps define issuer obligations around reserves, redemption, governance, data security, and Bank of Canada oversight. It does not itself provide payment rail access or limited direct settlement access.
See: Santander Scales Ebury To Control SME Cross Border Payments
The competitive question is not whether Canada should copy the Fed. It's whether Canada can give qualified PSPs, stablecoin issuers, and tokenization firms a clear access ladder from supervision to rail participation to settlement. If U.S. firms gain a narrow Fed settlement lane while Canadian firms wait for comparable clarity, product speed, treasury efficiency, and sponsor bank leverage may tilt south.
Talking Point
If U.S. firms get limited central bank settlement access, what should Canada let supervised PSPs access once they meet higher standards?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Bank Of Canada Maps AI Adoption In Central Banking
May 26, 2026 | NCFA Resource | Artificial Intelligence And Data, Risk Compliance And Regtech, Payments And Market Infrastructure
AI, Alternative Data, And Financial System Oversight
On May 15, 2026, the Bank of Canada published Integrating Non-traditional Data and AI into Central Banking. The staff paper examines how central banks use artificial intelligence and non traditional data in research, operations, payments monitoring, forecasting, and policy support.
The paper stays close to real operating problems. It focuses on data quality, model governance, human oversight, vendor risk, cybersecurity, and moving AI pilots into production.
What It Does In Practice
The paper shows how central banks use non traditional data from payment transactions, earnings call transcripts, satellite images, job postings, social media, scanner data, and real time business activity. It also explains how AI supports inflation tracking, nowcasting, anomaly detection, payments monitoring, internal automation, and policy work.
One Bank of Canada automation project improved filing accuracy to 99.5% and saved about 1.25 person years of staff capacity. The paper also cites a BIS survey showing more than 90% of responding central banks are moderately or extensively discussing AI internally.
The most useful section sets out six accelerators for responsible AI adoption in central banking. They include sandbox environments, technology readiness checks, high quality data, reusable development patterns, scale planning, and risk governance. The framework also applies to regulated financial institutions that need to transition AI from experiments into controlled production, similar to broader work underway around customer due diligence controls for fintechs.
Who Gets Value
This resource is useful for fintech founders, AI governance teams, regtech providers, financial institutions, payment companies, policy teams, investors, and compliance leaders.
See: Canada’s AI Productivity Test Is Execution
It is especially relevant for teams building explainable AI, payment intelligence, anomaly detection, compliance automation, model governance, and trusted workflow tools.
Strengths And Limits
The strength is its operating detail and the fact that the paper doesn't treat AI as a generic productivity story. It shows why regulated financial institutions need explainability, auditability, strong data controls, and clear ownership before AI can support high stakes decisions.
The paper also points to a real market gap. Central banks may need specialized AI tools and deeper in house expertise because many commercial systems are not designed for monetary policy analysis, payments oversight, or central bank operations.
The limit is scope. This is a central banking paper, not a commercialization guide. It does not estimate vendor spending, market size, adoption timelines, or private sector demand. Its value is the framework and the operating discipline behind it.
Key Resources
Bank Of Canada AI And Non Traditional Data Paper (primary Bank of Canada resource)
AI Agents Enter Governed Financial Workflows (AI governance and controls)
Tokenization Starts Looking Like Financial Infrastructure (regulated financial infrastructure)
Deloitte And Stablecorp Bring QCAD To Banks (Canadian payment infrastructure)
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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